Ether may be found around at this place (7)
I believe the answer is:
theatre
'this place' is the definition.
(I have seen 'Place of entertainment ' mean 'theatre' so perhaps 'place' could also mean 'theatre')
'ether may be found around at' is the wordplay.
'may be' indicates an anagram.
'found around' means one lot of letters goes inside another.
'ether' anagrammed gives 'there'.
'there' enclosing 'at' is 'THEATRE'.
(Other definitions for theatre that I've seen before include "Place for actors" , "Area of operations" , "Location for plays and operations" , "Drama venue" , "(Military) field of action" .)